Etihad
Airways, the national airline of the United Arab Emirates, today announced its
largest ever fleet order, for 199 aircraft and 294 engines, in a US$67 billion
dollar deal which will enable the airline to accelerate its industry-leading
growth over the next decade.

It
announced firm orders at the Dubai Air Show for 87 Airbus and 56 Boeing
aircraft, with a further 56 options and purchase rights. The new aircraft will be powered by 127 GE
Aviation, 115 Rolls-Royce and 52 CFM engines.

The new
aircraft will be used to support the ambitious growth strategy of Etihad
Airways, launching into new markets and increasing frequencies on existing
routes, as well as progressively replacing its older, less efficient
aircraft.

In a unique
new approach, Etihad Airways will have a capability to redirect orders to members
of its equity alliance, the airlines in key markets around the world in which
it holds minority shareholdings. This
will allow capacity to be allocated where most required, while improving fleet
commonality and sharing significant cost synergies among equity alliance
carriers.

The airline
currently has a fleet of 86 aircraft, with more than 80 on firm order. Its last major aircraft deal was made at the
Farnborough Air Show in 2008, where Etihad Airways announced firm orders for
100 aircraft, in a long-term order which was at the time one of the largest in
commercial aviation history.The value of the 2008 and 2013 orders, including
engines, tops US$ 110 billion at list prices.

Etihad
Airways will now become the single largest airline customer for the Boeing 787
Dreamliner, with the 30 aircraft in this order being added to 41 announced in
previous orders.It will also become a launch customer for the Boeing 777-8X
aircraft.

James
Hogan, President and Chief Executive Officer of Etihad Airways, said:“Last
week, Etihad Airways celebrated its tenth anniversary. In just one decade, we have grown into an
airline with 86 aircraft, carrying more than 11 million passengers on 97
routes, served by more than 16,500 employees.

“We now
have seven equity alliance partners reaching across the world and a business
strategy that has seen us create the world’s leading airline. We have achieved all of this while reaching
sustainable profitability.

“These
aircraft orders provide the next step in our long-term growth strategy. They
are about meeting the needs of the next 10 years, and beyond, as we grow
further and faster than ever before.

“We are
helping to establish Abu Dhabi as one of the world’s great aviation hubs,
offering connections to cities on every continent. This order will provide us with the capacity
to continue with those ambitious aspirations.”

The mix of
wide- and narrow-body aircraft will help support the development of the
airline’s maturing network, focused on its hub at Abu Dhabi International
Airport, which will see the new Midfield Terminal opening in 2017, significantly
increasing capacity.

Mr Hogan
said the ability to share the orders with members of the equity alliance
offered a unique opportunity. Etihad
Airways currently holds stakes in airberlin, Air Seychelles, Aer Lingus, Virgin
Australia, and Air Serbia. Etihad Airways last week received regulatory
approval for a proposed 24 per cent investment in India’s Jet Airways.

Today, it also
announced the acquisition of a 33.3 per cent stake in Swiss carrier, Darwin
Airline, which will offer Etihad Airways’ first branded regional operations
under the new Etihad Regional badge and livery.

Mr Hogan
said: “The revenue benefits of our equity alliance, to all the members, have
always been clear. But the real strength
of this strategy lies in the opportunity for business synergies which can improve
the operating costs of all the partners. This means all our strategic partners
will have the chance to benefit from it.

“When we
made our last major order, at Farnborough in 2008, we structured deals that
gave us great flexibility in the timing of aircraft deliveries, allowing us to
match them to actual passenger demand, according to market dynamics.

“These
deals take that concept a step further, allowing us to offer capacity where and
when it is most needed within the equity alliance. The opportunity to standardise fleets and
align product among members – whilst always keeping the distinct brand
identities of each airline – will offer both cost synergies and marketing
benefits.”

The Seabury
Group acted as advisors in the conclusion of these deals.

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